In the recent Commitment of Traders Report, Large Speculators have reduced their net short positions in Crude Oil, and increased their shorts in Heating Oil. So, it looks like crude prices will stabilize around the $60 mark, and heating oil prices will come down a bit.

As far as Gasoline is concerned, Large Speculators made no changes in their long positions. This tells us the gas prices will probably stabilize, or go a tad higher.

The report also revealed that Large Speculators increased their net short positions in Natural Gas futures. These Non-Commercial Traders held a net short position of 24,055 contracts, an increase of 6,600 contracts from the previous week.

What does all this mean? Energy prices are not on the brink of collapse. I do not think we will see another leg down in energy until the economy softens which will probably be sometime early next spring.